Pay your rent
Understanding Rent Convergence: What It Means for You and Why Your Voice Matters
As a social housing tenant, you may have heard the term “rent convergence” mentioned in the media or online. But what does it actually mean, and how might it affect you?
Rent convergence is a plan from the government to make rents fairer for people living in social housing. This means that similar homes in the same area will have similar rent, whether they are owned by the council or a housing association.
To do this, the government uses a formula that looks at things like:
- how much the home is worth,
- how big it is,
- and how much people earn in the area.
This helps them work out a “target rent” for each home.
The government started this plan in 2002 but stopped it in 2015. Now, they want to bring it back from April 2026 as part of a new 10-year rent plan.
Under this plan, most rents will go up each year by Consumer Price Index (CPI, a measure of inflation) + 1%. The rent charge for homes that are currently below the target rent may go up a little more each year until they reach the target.
The government says this plan will:
- Help landlords (like councils and housing associations) fix and build more homes.
- Make rent fairer, so people in similar homes pay similar amounts.
- Avoid big rent rises for everyone by only increasing rents that are too low.
If your rent is already close to the target, it will likely only go up by the usual CPI + 1% each year.
If your rent is much lower than the target, it might go up a bit more, by £1 or £2 extra per week, until it reaches the target rent.
This is meant to be fairer than raising everyone’s rent the same amount.
Struggling with rent payments?
If you’re struggling with rent payments, contact your Income Recovery Officers or the Rents Team. You can also reach out to City Advice or check our online resources for help with heating, child care costs, and more.
Your rent is due fortnightly, but you can also pay monthly or weekly if it is more convenient for you.
Direct debit
This is the easiest and most efficient way to pay your rent. Once it’s set up, you'll never have to worry about paying your rent on time again. You have the choice of paying on the 5th or 20th of the month and we let you know the amount ten days in advance of the payment date.
Download the direct debit form at the top of the page. This form should be completed electronically and returned via email where possible.
Telephone payments
Call the City of London Automated Payment Line on 03000 132 418. You will need your 10-digit Tenancy Reference number (starting with 500) to pay this way.
Internet banking
You can make a payment from your own online banking service. For details on how to set up contact the Rents Section on 020 7332 1263 or by emailing the Rents Section.
Online payment service
You can pay online 24 hours a day through our secure server using your credit or debit card.
Your payment will be credited to your rent account on the next working day.
Bank standing order
If you wish to pay by standing order please contact the Rent Section so that we can calculate the correct payment for you to ensure that your rent account is clear at the end of the financial year.
We will send you a form each time your rent changes and you must complete the form and send directly to your bank in time to start the new payments.
If you have an existing standing order to pay your housing rent that you wish to cancel so that you can set up a direct debit please download the also fill out the new direct debit form above.
Housing payment card
Using your Housing Payment card you can go into any Post Office in the country and pay your rent by either cash or cheque (cheques to be made payable to "The Post Office"). Your account will then be credited with your payment on the next working day.
Payzone outlets are based in supermarkets, garages and newsagents. You can use your Housing Payment Card to pay your rent anywhere in the country, using cash only, just keep an eye out for the Payzone logo.
Direct from your City of London salary or pension
If you are employed by the City of London or receive a pension from them you can arrange to have your rent paid directly from your salary or pension. Contact the Rent Section, on the details above, for a form and so that we can calculate the correct payment for you to ensure that your rent account is clear at the end of the financial year.
Cheque
We are no longer able to take payments by cheque.
If you have difficulty paying your rent, you need to let us know as soon as possible.
Making us aware of your situation will enable us to discuss the problem and advise you on what action you need to take. We can also provide the necessary information for making a housing benefit claim.
Do not ignore your rent arrears, as the amount will escalate and you may put yourself in danger of losing your home. If legal action is started you will have to pay the costs, which will increase your debt.
Should you find yourself in the position of being unable to deal with rent arrears, losing your home or any other debt, you should contact City Advice.
The Rents Section
Department of Community and Children's Services
City of London
3 Lauderdale Place
London EC2Y 8EN
Contact the Rents Team by phone (020 7332 1263) or by email.